Rlpc averys raises loan for dividend payout

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French metal shelving company Averys is looking to raise a 165 million euro ($213 million) leveraged loan to refinance existing debt and pay around 65 million euros as dividend to shareholders, banking sources said on Tuesday. French private equity firm LBO France bought Averys from 21 Centrale Partners in 2008, backed with 110 million euros of leveraged loans, according to Thomson Reuters LPC data. It has now decided to conduct a so-called dividend recapitalisation, a process where debt is refinanced and increased in order to facilitate a dividend payment.

LBO France was not immediately available to comment. Dividend recapitalisations have been a popular way for shareholders to realise value from a company and something which cash rich debt investors are permitting in order to keep invested in a deal.

BNP Paribas and RBC are leading the financing which is due to be shown to new and existing lenders at a bank meeting on Wednesday, the banking sources said.

The financing, which will total around 3.5 times debt to earnings, will include around 125 million euros of term loan B alongside a small term loan A and revolving credit and acquisition facility, the banking sources said. Averys manufactures racking and metal furniture and is one of the top five European market leaders with a 25 percent market share in France. It has revenues of 200 million euros, according to LBO France's websites.(1 US dollar = 0.7759 euro)